{"id":369024,"date":"2016-04-04T10:47:07","date_gmt":"2016-04-04T15:47:07","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/litigation\/legal-system\/class-action-cases.html"},"modified":"2026-07-20T16:04:54","modified_gmt":"2026-07-20T21:04:54","slug":"class-action-cases","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/litigation\/legal-system\/class-action-cases.html","title":{"rendered":"Class Action Cases"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">Class Action Cases<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/susan-buckner-j-d\/\">Susan Buckner, J.D.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/melissa-bender-esq\/\">Melissa Bender, Esq.<\/a>\n                | Last updated\n        <time>\n                            July 20, 2026\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n<div class=\"fl-key-takeaways fl-mb30\" data-testid=\"fl-key-takeaways\">\n    <div class=\"fl-card-content\">\n        <div class=\"fl-card-body fl-card-bg-teal fl-flex fl-flex-column\">\n                            <h2 class=\"fl-card-title fl-h2 fl-no-margin\">Key Takeaways<\/h2>\n                        <ul>\n<li>In a class action suit, a group of people\u00a0with similar injuries file suit against a defendant as a single plaintiff.<\/li>\n<li>Class action lawsuits reduce the number of court cases and prevents litigants from trying the same issues over and over again.<\/li>\n<li>Filing a class action lawsuit involves meeting an advanced set of court requirements to gain class certification.<\/li>\n<\/ul>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n<div><p>Trials and negotiations take time and can be expensive. It&#8217;s bad enough when one person needs to file a suit against a corporate defendant, but what happens when many people need to sue the corporation for\u00a0pretty much the\u00a0same reason? Is it effective for tens of thousands of cases to fill the courts with nearly identical cases?<\/p>\n<p>The obvious answer is no.\u00a0Courts prefer the\u00a0<a href=\"https:\/\/dictionary.findlaw.com\/definition\/class-action.html\" target=\"_blank\" rel=\"noopener\">class action<\/a> lawsuit in such situations.<\/p>\n<p>Class action lawsuits are often\u00a0filed in\u00a0<a href=\"https:\/\/www.findlaw.com\/injury\/product-liability.html\">defective product cases<\/a>, consumer protection issues,\u00a0securities fraud,\u00a0price-fixing instances,\u00a0deceptive business practices, and\u00a0<a href=\"https:\/\/www.findlaw.com\/employment\/wages-and-benefits\/wage-and-hour-class-action-lawsuits.html\">wage and hour disputes<\/a>. If you suspect you suffered the same harm as many other people, you can discuss the possibility of filing a class action or individual lawsuit with a <a href=\"https:\/\/lawyers.findlaw.com\/class-actions-plaintiff\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">civil law attorney<\/a>.<\/p>\n<h2>Why Do We Need Class Action Lawsuits?<\/h2>\n<p>In some cases, such as\u00a0product liability cases, individual claimants may not suffer the harm that requires legal action. For instance, if a car engine part is defective, some claimants may discover the faulty part before suffering any physical harm. They\u00a0suffer the annoyance and expense of replacing the part and perhaps some vehicle damage.<\/p>\n<p>On the other hand, some claimants won&#8217;t learn of the defect until their engine fails at high speed on the freeway. They may suffer serious injury or even death. All these individuals are victims of the same product defect. It&#8217;s common to expect\u00a0accident victims to think of legal action, but others are eligible as well. A\u00a0class action suit should be filed\u00a0if enough accidents and other problems\u00a0are due to the engine part.<\/p>\n<h2>Conditions of a Class Action Lawsuit<\/h2>\n<p>In a\u00a0class action\u00a0lawsuit, there are too many plaintiffs to join and participate on an individual basis. Claimants may request class certification, but the court has the final say.<\/p>\n<p>When making a class determination, courts consider:<\/p>\n<ul>\n<li>Whether the number of class members makes joining them all in an action impractical. No set number is\u00a0impractical,\u00a0but the class members must meet all other requirements.<\/li>\n<li>Whether the class members&#8217; claims share common issues of law or fact. All claimants must have similar claims against the defendant.<\/li>\n<li>Whether the proposed\u00a0<a href=\"https:\/\/dictionary.findlaw.com\/definition\/representative-party.html\" target=\"_blank\" rel=\"noopener\">class representative&#8217;s<\/a>\u00a0claim is typical of all others in the class. The class action must have one named plaintiff. This case is the one that goes to court. It must\u00a0represent all other members in the class.<\/li>\n<li>Whether the proposed class representative will protect the interest of the entire class<\/li>\n<\/ul>\n<p>Certifying a class also requires finding that separate actions would result in inconsistent findings for the claimants,\u00a0or that rulings for some class members would negatively affect other class members&#8217; interests.<\/p>\n<h2>Mass Torts vs. Class Actions<\/h2>\n<p>A mass tort may be a precursor to a class action. A <a href=\"https:\/\/www.findlaw.com\/injury\/torts-and-personal-injuries.html\">tort<\/a> is a civil wrongdoing, whether it&#8217;s intentional or accidental.\u00a0<\/p>\n<p>After a major accident, many victims have personal injury claims against the defendant. For example, passengers may sue the airline or manufacturer after a plane crash. If their claims have enough facts in common, the court may certify a class action. In other cases, like <a href=\"https:\/\/www.findlaw.com\/injury\/product-liability\/dangerous-drugs.html\">pharmaceutical claims<\/a>, there may be too many different types of claims to create a class representative.<\/p>\n<p>In these cases, mass tort litigation protects each party&#8217;s interests.\u00a0Multi-district litigation\u00a0(MDL) streamlines this process. When mass tort litigation has multiple cases in many states with similar features but not identical issues of fact and law, the federal courts may\u00a0oversee the case on a temporary basis. MDL cases often involve <a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/antitrust-and-trade-regulation.html\">antitrust<\/a> and <a href=\"https:\/\/www.findlaw.com\/injury\/product-liability.html\">product liability<\/a>.<\/p>\n<p>The mass torts return to state courts for trial once the federal court resolves <a href=\"https:\/\/www.findlaw.com\/litigation\/going-to-court\/filing-a-lawsuit-the-discovery-process.html\">discovery<\/a> and <a href=\"https:\/\/www.findlaw.com\/injury\/accident-injury-law\/resolving-your-case-before-trial-court-motions.html\">pretrial motions<\/a>. The case ends if the parties reach a whole or partial settlement during pretrial negotiations.<\/p>\n<h2>Opting In and Opting Out<\/h2>\n<p>One major downside to a class action case is that it may involve parties unaware of the legal case. Once the court certifies a class, the class representative or lead plaintiff must notify everyone affected by the case. All potential claimants must have the opportunity to either\u00a0opt in\u00a0or\u00a0opt out\u00a0of the case.<\/p>\n<p>The type of notice depends on the nature of the case. Very large cases may use newspaper advertisements or direct mail. If you have ever received a flyer asking if you ever used a certain product and wanted to be part of a lawsuit against the manufacturer, that was an\u00a0opt-in\u00a0notice.<\/p>\n<p>Cases involving large numbers of potential plaintiffs may be\u00a0opt-in\u00a0by default.\u00a0All claimants are part of the case unless they make a specific effort to\u00a0remove themselves. Individuals who are part of a claim lose their right to sue later.<\/p>\n<p>An example of this is the\u00a0<i>Schlesinger v. Ticketmaster\u00a0<\/i>case. The class action suit against Ticketmaster covered a period between 1999 and 2013 and involved up to 50 million potential claimants. Anyone who used Ticketmaster in that timeframe was eligible for part of the settlement, which was a ticket voucher.<\/p>\n<h2>Pros and Cons of Class Action Lawsuits<\/h2>\n<p>Class action litigation combines thousands\u00a0or even millions\u00a0of claims,\u00a0and resolves all issues at once. If things go well, there are many benefits for the plaintiffs.<\/p>\n<ul>\n<li>Combining many <a href=\"https:\/\/www.findlaw.com\/litigation\/going-to-court\/how-do-i-file-a-small-claims-court-lawsuit.html\">small claims<\/a> increases the value of the total case. In some cases, such as data breaches or the Ticketmaster case, the loss to each claimant is small and possibly not worth litigating. Combining them makes the case worth filing.<\/li>\n<li>In high-value cases, litigants may be unable to bring suit against the defendant. In <a href=\"https:\/\/www.findlaw.com\/consumer\/securities-law.html\">securities class actions<\/a> or other <a href=\"https:\/\/www.findlaw.com\/consumer\/credit-banking-finance.html\">financial cases<\/a>, individual victims face banks or securities brokers who can afford top-tier law firms. Class-action suits put litigants on equal footing.<\/li>\n<li>The result of a class action suit applies to all members of the class. Individual cases roll the dice each time. A\u00a0plaintiff might win or lose. If the <a href=\"https:\/\/www.findlaw.com\/litigation\/filing-a-lawsuit\/can-i-sue-a-bankrupt-loan-company.html\">defendant files for bankruptcy<\/a> before the last plaintiffs file, those plaintiffs win nothing.<\/li>\n<li>The defendant benefits by having the issue decided once. This offers a chance to resolve the facts in the case for any future related matters, known as\u00a0<a href=\"https:\/\/dictionary.findlaw.com\/definition\/estoppel.html\" target=\"_blank\" rel=\"noopener\">issue preclusion<\/a>.<\/li>\n<\/ul>\n<p>As\u00a0mentioned, the downside to class action suits is the lack of knowledge that many class participants have of the action. In addition, very large suits, like the Ticketmaster case, may lead to very small settlements. These nominal awards, called &#8220;coupon settlements,&#8221; result in the lead plaintiffs and attorneys receiving large settlements and the remaining claimants receiving almost nothing.<\/p>\n<h2>Are Class Action Settlements Fair?<\/h2>\n<p>A class action suit tries to ensure equal treatment for all participants. The named plaintiff represents\u00a0all other similarly situated claimants.\u00a0Anyone who fits within the definition of a class member is bound by the <a href=\"https:\/\/www.findlaw.com\/litigation\/legal-help-and-resources\/worksheet-plaintiff-s-settlement.html\">terms of the settlement<\/a>, whether they participated in the lawsuit or even knew about it.<\/p>\n<p>The <a href=\"https:\/\/www.congress.gov\/109\/plaws\/publ2\/PLAW-109publ2.pdf\" target=\"_blank\" rel=\"noopener\">Class Action Fairness Act<\/a> (CAFA) of 2005 addressed some of the notice and diversity issues of class action lawsuits. The court must review all coupon settlements and cash payments to ensure they have some value to all class members before approving a settlement.<\/p>\n<p>The settlement must include a distribution plan. Class action settlements are divided\u00a0<a href=\"https:\/\/dictionary.findlaw.com\/definition\/pro-rata.html\" target=\"_blank\" rel=\"noopener\">pro rata<\/a>\u00a0according to the amount each person participated in the case. Named plaintiffs and attorneys receive the largest amount, but each class member must receive some payout.<\/p>\n<p>In a class action, the court&#8217;s decision applies to every participant who has opted into the class. All individuals who fit within the court&#8217;s original definition of a class member are bound by the final court decision, even if they never\u00a0go to court or otherwise participate in the lawsuit.<\/p>\n<h2>Example of a Class Action: Fen-Phen<\/h2>\n<p>One of the most famous class action lawsuits, the &#8220;Fen-Phen&#8221; lawsuit, began in 1996. Two drugs, fenfluramine and phentermine, became healthcare stars as a potential treatment for morbid obesity. By 1996, doctors had written over 18 million prescriptions for the two drugs under their brand names.<\/p>\n<p>That same year, the Mayo Clinic found that the drugs in combination could cause a serious heart valve defect. In 1997, the manufacturer of the brand name drugs, American Home Products, pulled them from production.<\/p>\n<p>The Fen-Phen agreement highlights the benefits and drawbacks of a class action settlement.\u00a0<a href=\"https:\/\/www.nytimes.com\/1999\/10\/08\/business\/fen-phen-maker-to-pay-billions-in-settlement-of-diet-injury-cases.html\" target=\"_blank\" rel=\"noopener\">American Home Products<\/a>\u00a0set aside two funds for victims of the drugs. One fund, valued at $1 billion, paid for drug refunds and screening costs. A $2.55 billion fund paid personal injury claims up to $1.5 million each.\u00a0<\/p>\n<p>The settlement offered three opt-out points. However:<\/p>\n<ul>\n<li>Those who took the drugs for 60 days or less only received prescription refunds<\/li>\n<li>Plaintiffs had to\u00a0prove they suffered heart-valve defects to qualify for a maximum $1.5 million settlement. There was an opt-out provision at this point.<\/li>\n<li>Although it can take months or years for damage from the drugs to become evident, the statute of limitations for filing a claim was not tolled (extended) until several years after the initial lawsuit<\/li>\n<\/ul>\n<p>Fen-phen claims are still being paid in 2024, but most claimants joined the suit in 1996.\u00a0<\/p>\n<p>The lesson to take away from the Fen-Phen lawsuit\u00a0is that when a notice of a possible class action suit appears in your mail, don&#8217;t toss it aside. It could be very important.<\/p>\n<h2>Consult a Class Action Lawsuit Attorney<\/h2>\n<p>You may be part of a class action lawsuit if you suffered injuries due to a product defect or other cause that harmed others. Contact a\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/class-actions-plaintiff\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">class action attorney<\/a>\u00a0if you hear of legal action against a company that may have affected you or a family member. You have a limited time to join the suit and get the benefits of the class action.<\/p><\/div>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" clip-path=\"url(#clip0_604_3418)\">\n                        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